Visdant Company Provided the Following Information The Qualitative Assessment of Goodwill Is Completed and It Is

question 36

Essay

Visdant Company provided the following information:
$$\begin{array} { | l | r | } \hline \text { Fair value of Visdant, including goodwill } & \$ 2,100,000 \\\hline \text { Value in use of Visdant, } & \$ 2,000,000 \\\hline \text { Book value of Visdant net assets, excluding goodwill } & \$ 3,000,000 \\\hline \text { Add: Carrying value of goodwill } & \$ 600,000 \\\hline \text { Carrying value of Visdant, including goodwill } & \$ 2,400,000 \\\hline\end{array}$$
The qualitative assessment of goodwill is completed and it is more likely than not that goodwill is impaired. Describe the process for determining if Visdant needs to record a goodwill impairment loss and prepare any required journal entries. Visdant follows IFRS.

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Definitions:

Independent Variable

In experimental and statistical research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Dependent Variable

In research, the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Manipulated

Being controlled or influenced in an unfair or deceitful way, often without awareness of the manipulation.